A 2022 Toyota 4Runner costs $52,420. Assume the car

Last updated: 7/13/2022

A 2022 Toyota 4Runner costs $52,420. Assume the car depreciates a total of 24% during its first 5 years. (A) What is the value of the car after 5 years? (B) Suppose the depreciation is exponential. Write a formula for the value of the car when it is t years old. (C) Suppose the depreciation is linear. Write a formula for the value of the car when it is t years old. (D) If you were buying this car today and planning to trade it in after 3 years, which depreciation model would you prefer and why?